ISLAMABAD: Pakistan has formally approached the United Arab Emirates (UAE) to extend a $3 billion loan ahead of its scheduled maturity, according to sources in the Ministry of Finance.
Prime Minister Shehbaz Sharif has written to the UAE leadership, requesting a rollover of the loan, which is set to be repaid in three installments. Under the current repayment schedule, $2 billion is due this month, while the remaining $1 billion is to be paid in July.
The loan, originally deposited with the State Bank of Pakistan in 2021, includes two installments of $1 billion each falling due in the second and third weeks of January.
Finance ministry sources said the government is seeking a rollover of all three installments before their respective maturity dates and expressed confidence that the extension process would be completed smoothly and on time.
Pakistan has also assured the International Monetary Fund (IMF) that the UAE will continue to honour the rollover arrangement throughout the ongoing loan programme.
Officials added that during the current year, Pakistan expects to roll over a cumulative $12 billion in loans from key friendly countries, including the UAE, Saudi Arabia, and China, as part of its external financing strategy.